MIAMI: Three Things to Know About Condos
Miami residential is going from strong to stronger, particularly in the way condos are moving--inventories can't keep up, according to a Q3 Douglas Elliman report, released yesterday. (Inventory always had a weak cardio.) Douglas Elliman Florida brokerage CEO Jay Parker fills us in:
1) Everything is better than last year.
Sales volume and prices are reaching or exceeding '08 levels. In Miami-Dade, 2013 is going to be the best year since 2006 in terms of sales volume, Jay predicts. In Q3, Miami-Dade condo sales were up 18% year-over-year, and the average sales price is up about 14% compared with last year. Condo sales are outpacing the growth of inventory--a very healthy indicator, Jay says.
2) There's a shift away from cash to mortgage financing.
A small but distinct shift away from cash toward mortgage-financed purchases is underway, Jay says. Even though the majority of purchases are still cash, the growing number of mortgages means that lenders are starting to loosen their belts, and buyers are eager to snap up units while interest rates are still relatively low.
3) New Yorkers and other buyers are back in force.
"There's a strengthening pool of New York buyers entering the Miami market, but it isn't only New York--Canadians and Midwesterners are in the market in droves, looking to buy," notes Jay.
